As a seasoned crypto investor with over a decade of experience navigating this wild frontier, I find myself once again entrenched in the epic battle between Binance and the SEC. Having witnessed numerous regulatory struggles within the industry, I can’t help but feel a sense of déjà vu as I observe the latest turn of events.
Binance and its previous head, Changpeng “CZ” Zhao, are persisting with their court disputes against the United States Securities and Exchange Commission (SEC).
In a court filing on November 4th, Binance’s legal team petitioned the U.S. court to throw out the updated SEC lawsuit that now focuses on particular tokens such as Axie Infinity Shards (AXS), Filecoin (FIL), Cosmos’ ATOM, The Sandbox’s SAND, and Decentraland’s MANA. The reason given is because these tokens are alleged to be securities by the SEC.
The motion argues that the SEC’s claims “fail as a matter of law.” Binance’s lawyers say that just because people buy these tokens doesn’t mean they’re “securities.”
The lawyers argue that secondary sales of these tokens—when people buy and sell them on the open market without knowing the original seller—should not be labeled as securities transactions just because some buyers might expect the price to go up.
According to legal representatives, the Securities and Exchange Commission (SEC) has yet to provide a clear definition of which cryptocurrency transactions are considered securities deals. In other words, Binance’s filing argues that the SEC has not specified any standard for determining which crypto-asset trades meet the criteria of investment contracts.
The team pointed out that the SEC recently decided not to call Ethereum (ETH) a security but didn’t explain why. This confusion makes it hard for crypto companies to know what the rules are.
In June 2023, the Securities and Exchange Commission (SEC) initiated a case against Binance, alleging that they and their U.S. associates had been selling unregistered securities. Notably, CZ, who is associated with Binance, was recently discharged from prison after serving a four-month sentence for separate money laundering charges.
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2024-11-05 23:48